Success is never an overnight event in the credit union world. You identify best practices by identifying best players, and if you try and fail, then “try, try again,” advise Phil Hunt and Mark Decello of KEMBA Financial Credit Union ($582M, Gahanna, OH).
By pairing what the duo calls “back to basics” operations with a lot of flexibility and tenacity in pursuing opportunity, Kemba discovered diamonds in the rough, despite the quarter’s economic burdens. Renewed SEG outreach, increased business development, mortgage investment, and loan recapture have brought the credit union nearly 14% growth on both sides of the balance sheet and a more than 50% increase in year-over-year loan activity.
Second quarter successes include:
A 30 second TV spot promoting its low rate credit card paired with cross-selling tiered automobile loans resulted in 1,242 new cards, $6 million in balance transfers, and $3 million in auto loans.
A 10-year fixed mortgage with tight qualifying criteria seized the opportunity in the frozen lending market and generated $8.4 million in mortgage loans.
Full-page advertisements with holistic comparisons of loan and share rates, accessibility, and insurance highlighted the difference between Kemba and its competing local banks. “We like our members to compare us to the banking world,” Hunt and Decello say.
KEMBA's auto loan recapture program led to better deals for the member and deeper relationships for the credit union.
Watch the clip above for takeaways on how to utilize the opportunities in tough markets; then watch the entire event 2nd Quarter 2010 Trendwatch for more performance highlights.